Prospex says onshore Poland drilling plan approved

Prospex Oil & Gas said the well drilling plan has been approved by the Polish Mining Authority to drill the Boleslaw-1 well ('Boleslaw-1' or 'the Well') in the 1,150 sq km Licence.

The approval of the plan represents the final regulatory milestone ahead of drilling Boleslaw-1, which is targeting gas in an active petroleum system.

With well pad construction currently underway and on schedule, Boleslaw-1 remains on track to be drilled in December 2016.

The Well will be targeting Boleslaw, a drill ready gas prospect with two mapped reservoirs that was assigned by AGR TRACS in an independent Competent Persons' Report ('CPR') a gross best estimate of 87 bscf and a risked current valuation (net to Prospex) ranging from US$7.1m to US$12.2m (£5.6m and £9.7m based on £/$ rate of 1.26 as at 01 December 2016).

In the CPR, AGR modelled production scenarios at 3,333-6,666 boe per day from a single well and assigned a Net Present Value ('NPV') range of between US$44m and US$95m (net to Prospex) (£35m and £75m based on £/$ rate of 1.26 as at 01 December 2016).

Kolo is 100% owned by Strzelecki Energia Sp z.o.o ('Strzelecki'), a wholly owned subsidiary of Hutton Poland Limited ('Hutton') in which Prospex holds a 49% interest.